Sural SpA & Anor v Downer EDI Rail Pty Limited [2007] NSWSC 1234

New South Wales Supreme Court

CITATION : Sural SpA & Anor v Downer EDI Rail Pty Limited [2007] NSWSC 1234

HEARING DATE(S) : 8/10/07, 9/10/07, 11/10/07, 12/10/07, 15/10/07 - 19/10/07, 22/10/07 - 24/10/07

JUDGMENT DATE : 7 November 2007

JURISDICTION : Equity Division Technology and Construction List

JUDGMENT OF : Einstein J

DECISION : Defendant/cross-claimant succeeds in its claims for breach of contract - Verdict to be entered for the defendant/cross claimant.

CATCHWORDS : Contract - Novation - Variation - Formal contract for the manufacture and supply by Italian company of conductor to be used by Australian company in construction of electricity power lines in Western Australia - Terms of informal arrangements between contracting parties for the variation/novation of contractual obligations - Inferences from evidence of conversations, communications and subsequent conduct - Contractual construction - Causation - Damages for breach of contract - Duty to mitigate - Expert evidence - Jones v Dunkel

LEGISLATION CITED : Evidence Act 1995 (NSW)

ABB Engineering Construction Pty Ltd v Abigroup Contractors Pty Ltd [2003] NSWSC 665 Abigroup Contractors Pty Ltd v ABB Service Pty Ltd [2004] NSWCA 181 Adler v Australian Securities and Investments Commission [2003] NSWCA 131 Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309 Allen v Carbone (1975) 132 CLR 528 Anaconda Nickel Ltd v Tarmoola Australia Pty Ltd (2000) 22 WAR 101 Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 Banco de Portugal v Waterlow & Sons Ltd [1932] AC 452 Barrier Wharfs Ltd v W Scott Fell & Co Ltd (1908) 5 CLR 647 Baulkham Hills Private Hospital Pty Ltd v G R Securities Pty Ltd (1986) 40 NSWLR 622 Bellingham v Dhillon [1973] 1 All ER 20 BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 British Westinghouse Electric and Manufacturing Co Ltd v Underground Electric Railways Co of London Ltd [1912] AC 673 Brunninghausen v Glavanics (1999) 46 NSWLR 538 B Seppelt & Sons Ltd v Commissioner for Main Roads (1975) 1 BPR 9147 Cardwell Shire Council v Calabrese (1975) 49 ALJR 164 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Commissioner of Taxation of the Commonwealth of Australia v Sara Lee Household & Body Care (Australia) Pty Ltd (2000) 201 CLR 520 Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64 Dunkirk Colliery Company v Lever [1878] 9 Ch D 20 FAI Traders Insurance Co Ltd v Savoy Plaza Pty Ltd [1993] 2 VR 343 Fightvision Pty Ltd v Onisforou & Ors (1999) 47 NSWLR 473 Film Bars Pty Ltd v Pacific Film Laboratories Pty Ltd (1979) 1 BPR 9251 Garnac Grain Co Inc v HMF Faure & Fairclough Ltd & Bunge Corp [1968] AC 1130 Geebung Investments Pty Ltd v Varga Group Investments (No.8) Pty Ltd (1995) 7 BPR 14,551 Godecke v Kirwan (1973) 129 CLR 629 Graham Evans Pty Ltd v Stencraft Pty Ltd (2000) 16 BCL 335 G R Securities Pty Ltd v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631 Harpers Trading (Singapore) Pte Ltd v RFL International Ltd (unreported, Supreme Court of New South Wales, Carruthers J, 12 December 1994, BC9403441) Hasell v Bagot Shakes and Lewis Ltd (1911) 13 CLR 374 Heysham Properties Pty Limited v Action Motor Group Pty Limited & Ors (1996) 14 BCL 145 CASES CITED : Hide & Skin Trading Pty Ltd v Oceanic Meat Traders Ltd (1990) 20 NSWLR 310 Hoad v Scone Motors Pty Limited [1977] 1 NSWLR 88 Howard Smith & Co Ltd v Varawa (1907) 5 CLR 68 Inland Revenue Commissioners v Raphael [1935] AC 96 Integrated Computer Services Pty Limited v Digital Equipment Corporation (Australia) Pty Limited (unreported, Court of Appeal of New South Wales, McHugh, Mahoney and Hope JJA, 23 December 1988, BC8801158) James Findlay & Company Limited v NV Kwik Hoo Tong Handel Maatschappij [1929] 1 KB 400 John R Keith Ltd v Multiplex Constructions (NSW) Pty Ltd & Anor [2002] NSWSC 43 Jones v Dunkel (1959) 101 CLR 298 London & South of England Building Society v Stone [1983] 3 All ER 105 Love & Stewart Ltd v S Instone & Co Ltd (1917) 33 TLR 475 Masters v Cameron (1954) 91 CLR 353 Metal Fabrications (Vic) Pty Ltd v Kelcey [1986] VR 507 Monroe Schneider Associates (Inc) v No 1 Raberem Pty Ltd (1991) 33 FCR 1 Munce v Vinidex Tubemarkers Pty Ltd [1974] 2 NSWLR 235 Narni Pty Ltd v National Australia Bank Limited [2001] VSCA 31 NRMA Ltd v Morgan (1999) 31 ACSR 435 Payzu Ltd v Saunders [1919] 2 KB 581 Pobjie Agencies Pty Ltd v Vinidex Tubemakers Pty Ltd [2000] NSWCA 105 Raguz v Sullivan (2000) 50 NSWLR 236 Reardon-Smith Line Ltd v Hansen-Tangen [1976] 1 WLR 989 Roper v Johnson (1873) LR8CP 167 Ryan (Receiver & Manager of Homfray Carpets Australia Pty Ltd) v Textile Clothing & Footwear Union Australia [1996] 2 VR 235 Sacher Investments Pty Limited v Forma Stereo Consultants Pty Limited [1976] 1 NSWLR 5 Schellenberg v Tunnel Holdings Pty Ltd (2000) 170 ALR 594 Segenhoe Limited v Akins (1990) 29 NSWLR 569 Simonius Vischer & Co Ltd v Holt & Thompson [1979] 2 NSWLR 322 Sinclair Scott & Co Ltd v Naughton (1929) 43 CLR 310 Smailes & Son v Hans Dessen & Co (1906) 95 LT 809 Sotiros Shipping Inc & Anor v Sameiet Solholt (The "Solholt") [1983] 1 Lloyd's Rep 605 TCN Channel Nine v Hayden Enterprises Pty Limited (1989) 16 NSWLR 130 Telstra Corporation Limited v Australis Media Holdings (1997) 24 ACSR 55 Tern Minerals NL v Kalbara Mining NL (1990) 3 WAR 486 Tomko v Palasty [2007] NSWCA 258 Wenkart v Pitman (1998) 46 NSWLR 502